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Lesson 5. The Five Types of Stock - Pg. 23

23 Chapter 5. The Five Types of Stock In this lesson you will learn how the goals of stock and the conditions of their issuing companies are described using Wall Street terms. Stock Characteristics Companies, like almost anything else, are available for purchase and sale. Your daily newspaper certainly covers the more noteworthy purchases such as AOL's recent purchase of Time Warner. In addition, however, and on a much smaller scale, individuals can purchase a franchise restaurant like McDonald's, a small bed and breakfast, or the local corner store. Even professional practices such as a dentistry or professional massage parlor are usually sold when the proprietor retires or leaves the profession. As these businesses vary, so does the accompanying stock. Over the years, investors have come up with descriptive names to characterize the differences between these stocks. This is not meant to imply that all stocks bear little resemblance to each other. In fact, stocks actually